Close Brothers acquire GMAC loan book
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The Close Brothers Group has acquired the invoice financing loan book of GMAC Commercial Finance Limited (UK) for a premium to net book value of up to £4m in cash.
The gross assets being acquired in the transaction will be the loan book which totals £94m and therefore the total consideration payable will be a maximum of £98m.
The acquisition will also include the transfer of 23 staff to Close Brothers.
The business will be integrated into Close Brothers’ existing invoice finance business by the end of the current financial year to 31 July 2010 and the loan book is expected to break even in the current financial year.
It is also expected to generate a return on gross assets broadly in line with the returns produced by the Banking division by the end of the financial year to 31 July 2012.
The loan book was part of a larger, consolidated business and separate historical profits attributable to the assets are not available.
Stephen Hodges, managing director of Close Brothers and chief executive of the Banking division, says: “We are delighted to announce this acquisition of a high quality loan book in one of our core commercial banking businesses which adds further scale to our invoice finance operations and allows us to leverage our market experience and funding strength to create value for our shareholders.”
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